The Prime Minister, Narendra Modi approves Phase-II of Grid Connected Rooftop Solar Program for achieving the cumulative capacity of 40,000 MW from Rooftop Solar Projects by the year 2022.
The program will be implemented with total central financial support of Rs.11,814 crore.
CFA is distributed among the following category:
- Residential – 60%
- Group Housing Societies/Residential Welfare Associations (GHS/RAW) – 20%
- Performance-based incentives to DISCOMs – 20%
A brief description of CFA distribution in Phase-II Rooftop Solar plan
- CFA under residential category will be provided for 4000 MW capacity and the same will be provided on the basis of benchmark cost or tender cost, whichever is lower.
- For Residential
- 40% CFA (upto 3kW)
- 20% (beyond 3kW & upto 10kW).
- Group Housing Societies/Residential Welfare Associations (GHS/RAW). The capacity eligible will be limited to 10kW per house with a maximum of 500kWp.
- 20% CFA for the supply of power to common facilities.
- The main focus will be on increased involvement of DISCOMs. Performance-based incentives for DISCOMs based on the capacity achieved in a financial year.
- Up to 10 % achieved on top of the base capacity – No incentive
- 10% – 15% achieved on top of the base capacity – 5% incentive of the applicable cost for capacity achieved above 10% of the base capacity.
- Above 15% achieved on top of the base capacity – 5% incentive for achieving 10-15% plus 10% incentive for capacity achieved beyond 15% of the installed base capacity
- Central financial support will not be available for other categories i.e., institutional, educational, social, government, commercial, industrial, etc.
The incentives to the DISCOMs will be available only for initial capacity addition of 18,000 MW under the scheme.
Considering average energy generation of 1.5 million units per MW, it is expected that addition of 38 GW solar rooftop plants under Phase-II by the year 2022 will result in a CO2 emission reduction of about 45.6 tons per year.
** CFA – Central Financial Assistance